Google, a subsidiary of Alphabet, burned through nearly $6 billion in cash during the last quarter as its spending on artificial intelligence infrastructure surged. This substantial cash outlay is part of a broader strategy where Alphabet has been significantly increasing its capital expenditures (capex) to support its AI ambitions.
In April, Alphabet had already raised its 2026 capital expenditure guidance to a range of $180 billion to $190 billion, up from initial projections. Chief Financial Officer Anat Ashkenazi further indicated that the company expects its 2027 capital expenditures to "significantly increase" beyond these figures.
The increased spending highlights Alphabet's commitment to leading in the AI space, even as it has ceased share repurchases to prioritize these investments. This strategic shift suggests the company believes its cash is better utilized in building out AI infrastructure than in returning capital to shareholders, reflecting a high-stakes bet on the profitability and growth prospects of AI.
